Gasoline

Gasoline Prices Tumble to $2.57 Per Gallon

The nation's average gasoline price fell 5 cents to $2.57 per gallon, especially in Texas, where Hurricane Harvey made landfall a month ago, according to AAA.

Gasoline is still significantly higher than a month ago (22 cents) and a year ago (36 cents), but is falling on a daily basis, said Jeanette Casselano, AAA spokesperson. Part of the price movement is due to a switch to the winter blend of gasoline, which has about 1.7% less energy than summer blend so it can evaporate more quickly at lower temperatures.

"Gas prices are getting cheaper by the day," Casselano said. "Pump prices may not be dropping as fast as motorists would like, but with the switchover to winter-blend gasoline, consumer demand beginning to slow and Gulf Coast refineries getting closer to normal operations, consumers can expect gas prices to continue to be less expensive through October."

The largest price declines came in Midwest and Central states such as Indiana (12 cents), Michigan (12 cents), Kentucky (11 cents) and Ohio (10 cents).

Prices in South and Southeast states remain elevated due to Hurricane Harvey. Gasoline prices are at least 30 cents more expensive than a month ago in Georgia (44 cents), South Carolina (39 cents), Alabama (37 cents), Florida (36 cents), Mississippi (32 cents) and Texas (31 cents), according to AAA.

Meanwhile, the average price of diesel fell three-tenths of a cent to $2.788 for the week. The national average price is now 40.6 cents higher than a year ago.

The average fuel economy of new vehicles sold in the U.S. in December fell to 25 mpg — down 0.2 mpg from a revised November value, according to Brandon Schoettle and Michael Sivak, researchers from the University of Michigan's Transportation Research Institute (UMTRI).

The national average price of unleaded gasoline jumped 5 cents to $2.49 per gallon in the first week of 2018 and has reached a level not seen since 2014 during the week that starts the new year, according to AAA.

China is setting a deadline for automakers to end the sale of fossil-fuel powered vehicles as the country looks to reduce oil consumption and pollution and push for the development of electric vehicles. Regulators are working on a timetable for the ban.